40. Conditions to be satisfied

For a subsidy to be payable to a contractor on behalf of an eligible member for a premium period, the contractor must comply with the following conditions:

(a) before each premium period, the contractor must inform a member who gives his or her consent to the contractor to participate in this Scheme:

(i) whether the member is an eligible member at that time; and

(ii) the amount of the premium;

(iii) the amount of the premium that the member must pay directly to the contractor; and

(iv) the amount, including a zero amount, the contractor has calculated as the amount of subsidy or advance subsidy payable by the Chief Executive Medicare, subject to this Scheme, in respect of that member and the method by which that amount was calculated; and

(v) any other information required by the PSS contract;

(b) the premium must be:

(i) calculated taking into account any amounts receivable by the contracted insurer from the Commonwealth or the Chief Executive Medicare under the Act, but not any payment made, or to be made at any time, under this Scheme or the MISS; and

(ii) calculated using methodology that:

(A) complies with applicable Laws; and

(B) does not take into account the possible application of this Scheme to a member; and

(c) the contractor must keep records relevant to the premium payable by a medical practitioner and the calculation of subsidy paid on behalf of an eligible member for five years from the day on which the records were created; and

(d) the contractor must comply with all applicable Laws in respect of contracts of insurance; and

(e) the contractor must comply with the conditions set out in the PSS contract for the payment of subsidy on behalf of members under this Scheme.

Part 8 Administration fee